Top Tax Tips for Owner Managed Businesses
8. Tax Free Employee Benefits
Tax free benefits are a great way to incentivise staff and are tax efficient from the point of view of the company.
Examples of tax efficient benefits include:

  • Provision of one mobile phone per employee, – HMRC have now confirmed that i-phones and smart phones will be treated as mobile phones and not computers,
  • Free or subsidised meals provided on the employers’ business premises,
  • Annual function (such as Christmas party) – up to £150 per head,
  • Long service awards of up to £50 for each year’s service where employees have worked for their employer for more than 20 years,
  • Workplace parking spaces,
  • Provision of works buses with seating capacity of 9 or more,
  • Up to £8,000 of qualifying removal expenses,
  • One health screening or medical check up,
  • Childcare facilities where the employer is at least partly responsible for the financing and management of the facilities,
  • The provision of loans up to £5,000